How an Animal Health Products Company saved $1 million on Packaging and Small Parcel With Procure Analytics 

Overview

A global animal-health company selling products and services to veterinary practices in over 19 countries and over 100,000 customers worldwide. They approached Procure Analytics as they wanted to reduce their shipping costs and consolidate their box sizes. 

Challenges

The company had 16 distribution centers across the US, with each keeping different box sizes and serving differing ranges of customer needs. Their customers could order any combination and quantity of items at any time, making it difficult to find the optimal box size for each order. 

Procure Analytics implemented ‘Aether,’ its analytical packaging solution.

Approach

Aether utilizes unique historical data and simulates real-world packing in a virtual environment; replicating the logic of the company’s warehouse management system and optimizing packaging with proprietary algorithms. Accounting for the freight and material costs, as well as physical constraints across the customers network, Aether identified the optimal box dimensions for the entire distribution network. 

Results

Aether identified more than $1 million of annual cost savings for the company by reducing the dimensional weight of its packages, while also consolidating down to 12 standard box sizes across all 16 distribution centers. 

To validate the findings, PA conducted trials at two distribution centers; capturing savings consistent with expectations. 

Thinking the results could be a fluke, the customer requested a second trial. PA scaled up to seven distribution centers, implemented the new box sizes and monitored the savings. In the end, reassured by thorough testing, the company decided to implement the new sizes across its whole network and capture over $1 million in savings.